IKN Authority Head Invites Kazakhstan CEOs to Invest in Indonesia New Capital
Editor
6 July 2023 19:19 WIB
TEMPO.CO, Jakarta - The head of Indonesia's new capital or IKN authority, Bambang Susantono, invited Kazakhstan entrepreneurs to invest in IKN at an Investment Forum dubbed 'Investing in Indonesia’s Future Capital: Smart and Sustainable Forest City Nusantara' held in Astana, Kazakhstan, on Wednesday, July 5, 2023.
The plan to relocate Indonesia’s capital to the new city of Nusantara in East Kalimantan is expected to help decrease the social gap and encourage economic growth. Hopefully, Indonesia’s economic growth will be more inclusive and prevalent.
Bambang explained in the forum that the main strategy of IKN emphasized on molding a smart and sustainable forest city. Nusantara is also designed to focus on technological implementation to improve the quality of life and control the urban environment. The smart feature of Nusantara will have a role in creating a high-quality and regenerative environment modeled after a circular economy. “With all these features, Nusantara plans to be carbon neutral by 2045. It surpasses Indonesia’s 2060 net-zero national target. The development of this capital has several stages until 2045,” said Bambang on July 4, 2023.
Acknowledging this condition, the government of Indonesia opens the opportunity to invest for foreign investors to contribute to the development, in the form of investment or public-private partnership. Indonesia is also open to exploring various creative funding projects, such as blended financing and crowdfunding. The government also prepares several incentives for interested parties, such as tax holidays and tax deduction schemes.
“I hope you are assured that this is not the usual city development. We strive to develop a green, smart, inclusive, strong, and sustainable city,” Bambang said.
During the meeting, several Kazakhstan construction companies and major banks expressed their initial interest to invest and plan to visit the site. The Indonesian Embassy in Astana cooperated with OIKN to design a visit for potential investors to directly observe the city development which was dubbed Astana-Nusantara Business Trip.
At the same forum, Indonesia’s Ambassador for Kazakhstan and Tajikistan, M. Fadjroel Rachman said that the 30-year momentum of Indonesia-Kazakhstan diplomatic relations is the most appropriate occasion to boost collaboration, including in the investment sector.
Previously on July 3, 2023, Bambang and the Governor of Astana Zhenis Kassymbek signed an MoU between IKN Authority and Astana’s Governor's Office concerning the IKN initiative. The MoU stipulated collaboration in various sectors, such as the economy, energy, transportation, city governance, and culture. This marked Indonesia-Kazakhstan's 30-year bilateral relations in 2023 and a symbol of both countries’ close relations.
RACHEL FARAHDIBA REGAR / NAJLA (Translator)
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